【Fujitomi】OSE225 Futures: Clear Break Below the Ichimoku Cloud; Caution Needed for Triggers
The Nikkei Stock Average rebounded, ending trading at 18,861.27 yen, up 51.02 yen (0.27%) from the previous day. Early this morning, North Korea launched a ballistic missile believed to be a mid-range missile toward the Sea of Japan, triggering selling by foreign investors due to geopolitical risk. In the afternoon, there was a bombing in Lahore, Pakistan, but its impact was limited. With the U.S.-China summit to be held in Florida starting tomorrow, many investors want to assess the situation, and the Tokyo stock market in the afternoon lacked a clear direction, with a wait-and-see mood spreading. As expectations for policies from the Trump administration in the United States have waned, buying focused on domestically oriented stocks with solid earnings prospects. Fanuc, SoftBank, and Secom were bought, contributing to the rise in the Nikkei Stock Average, while Honda, Denso, and Toyota were sold, weighing on the Nikkei Average. Fanuc, which was upgraded by some securities firms and was well received, rose 2.9% and contributed about 25 yen to the Nikkei average.
Today, what attracted attention among domestic and foreign institutional investors was that front-month puts in options trading ex-pit executed in large blocks in succession. Selling pressure intensified in the Nikkei futures, and provocative selling was observed.
The TOPIX finished at 1,504.66, up 0.12 points (0.01%). The trading value on the Tokyo Stock Exchange First Section was 2.2324 trillion yen, and the trading volume was 1.89216 billion shares. The number of advancing issues on the First Section was 730, declining 1,154, and 128 were unchanged.
OSE 225 futures show a pronounced break below the “cloud” in the Ichimoku chart. The previous day’s low of 18,690 yen and the January low of 18,630 yen are in focus, and if the January low is breached, market sentiment could deteriorate further. As with the currency market, caution is required regarding potential selling pressure and moves in the options market.
